STANDARD COMPETENCIES:

 

 I.      Analyze management.  (I)

 II.     Evaluate how to read financial reports.  (II)

 TOPICAL OUTLINE:

 

 I.      Management

         A.      Setting Goals

         B.      Evaluations

 II.     Reading Financial Reports

         A.      Starting with Cash Flows

         B.      Introducing the Balance Sheet and Income Statement

         C.      Profit

         D.      Sales Revenue/Accounts Receivable

         E.      Cost of Goods Sold/Inventory

         F.      Inventory/Accounts Payable

         G.      Operating Expenses/Accounts Payable

         H.      Operating Expense/Accrued Expenses

         I.      Operating Expenses/Prepaid Expenses

         J.      Property, Plant and Equipment/Depreciation/Accumulated Depreciation

         K.      Interest Expense/Accrued Expenses

         L.      Income Tax Expense/Income Tax Payable

         M.      Net Income (Profit)/Retained Earnings

         N.      Cash Flow Analysis of Profit

         O.      Other Cash Flows--Financing & Investing Activities

         P.      Growth, Decline, and Cash Flow

         Q.      Footnotes--The Fine Print in Financial Reports

         R.      The Cost of Credibility--Audits by CPAs

         S.      Manipulating the Numbers

         T.      Making and Changing the Rules

         U.      The Cost of Goods Sold Conundrum

         V.      Accelerated or Straight-Line Depreciation

         W.      Ratios for Creditors and Investors